IA Clarington Aston Hill Tactical Yield Fund (TSX:TYF.A) has completed its initial public offering of 10 million units for gross proceeds of $100 million, IA Clarington Investments Inc. announced Monday.

Each $10 unit consists of one transferable trust unit and one Trust Unit purchase warrant. The units will separate into trust units and warrants on or before the 30 day following the closing of the offering. Each warrant entitles the holder to purchase one trust unit at the subscription price of $10.00 per trust unit on or before 17:00 ET on April 29, 2011.

The fund’s investment objectives are:

• to provide unitholders with monthly cash distributions, initially targeted to be 6.0% per trust unit per year on the original offering price of $10 per unit; and

• to maximize total returns for unitholders, consisting of both cash distributions and capital appreciation, while reducing risk and preserving capital.

The fund’s investment strategy is to invest in an actively managed, diversified portfolio comprised primarily of Canadian common and preferred equity securities and income trust units that provide a consistent and stable source of current income, and fixed income securities, including high yield corporate debt securities, cash and cash equivalents.

Each of the equity portion and the fixed income portion generally will represent between one-third and two-thirds of the portfolio, with the allocation at any time being determined by the portfolio manager based on its view of market opportunities at the time of investment.

The fund will be actively managed by Catapult Financial Management Inc., and Ben Cheng will be the lead portfolio manager responsible for the fund.

On or before April 30, 2012, the Fund will either convert to an open-ended mutual fund, or merge on a tax-deferred basis with an open-ended mutual fund to be managed by IA Clarington or an affiliate.

The syndicate of agents is co-led by CIBC World Markets Inc. and RBC Capital Markets and includes BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Financial Ltd., Desjardins Securities Inc., HSBC Securities (Canada) Inc., Raymond James Ltd., Wellington West Capital Markets Inc., Dundee Securities Corporation, Macquarie Capital Markets Canada Ltd., Industrial Alliance Securities Inc. and Rothenberg Capital Management Inc.

IE